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D. K DAVCCircle Preeident SNEA O), Gujarat

1y1. : +91-9426505850

SANCHAR NIGAM EXECUTMS' ASSOCTATTON (INDTA)GUJARAT CIRCLE HEAD QUARTER

BIPIN G. PATCLCircle Secretary SNEA (I), Gujarat

M. : +91-94262709,44

To,Shri Narendrabhai Modiji,The Honorable Prime Minister of India,South Block, Raisina Hill, New Delhi - 110011,7, Lok Kalyan Marg, New Delhi - 110011, Dated: 24lOglzOLg

Our Earlier Ref.Letter: (1) SNEA/ Gujarat lL9-20109at9 dated: A3rc912019 addressed to Hon'ble PMO with copy

to Hon'ble MOC vide Registration number: PMOPG/E/20t9105t2374 dated 03.09.2019(2) SNEA/ Gujarat lt9-20lO6at9 dated: 70106120t9 addressed to Hon'ble PMO with copy to Hon'ble MOC videRegistration number: PMOPG/E/2019/0311532 & Reply received on dated: 31.07.2019(3) SNEA/ Gujarat /18-19/03a19 dated: 04 /03 12019 addressed to Hon'ble PMO wi[h copy to Hon'ble MOC vide

Registration number: PMOPG/E/2019/0126337 & Reply received on 18/06/2019(4) SNEA/ Gujarat /18-19/11c18 dated: 23 l7L IZ}LB addressed to Hon'ble PMO with copy to Hon'ble MOC vide

Registration number: PMOPG|E|I018/0543322 & Reply received on2610212019, written for review on: 03.03.2019

Letter No: SNEA/ Gujarat lt9'20109d19 dated: 18/09/2019Subject: In connection of our earlier reference letters, our humble Request to your good self for expeditingBSNL revival plan related decisions and implementation & immediately addressing finance related issues.

Respected Sir,In connection of our above reference correspondence and reply received from office of

Hon'ble PMO, we are thankful to senior officers at Hon'ble PMO.

By viewing all the replies and subsequent course of actions initiated by the Government in

terms of forming the Group of Secretaries and Group of Ministers for taking necessary policy decisions aregiving an impression that our Government is keen for resolving issues pertain to revival of BSNL - MTNL.

However tooking to the present, severe condition of BSNL it is requested to place revival ofBSNL-MTNL on fast track, as day by day the financial situation is worsening and reaching beyondcontrol. Now further any more detay in implementing various policy decisions for revival will alsoremain ineffective up to an extent that it will make impossible to revive and save BSNL - MTNL.

As, at present BSNL is not in position to pay various payments since months together such as

electricity bills, rent to owners of Exchanges & Mobile Towers and bills of various vendors performing routine

maintenance work due to non availabilrty of suffrcient fund, As a consequence large no's of Telephone

Exchanges & Mobile Towers becoming non operational and large no.s of long distance & local OFC Cable

faults are remain unattended and accumulating day by day. Hence situations have fufther resulted in tooverall failure for effectively maintaining & providing services to existing and prospective customers

uninterruptedly. It is further resulting to customer dissatisfaction as well stopped new expansion of services.

The main reasons behind the present financial crisis of BSNL are also important to understandare highlighted in brief as under.

Since past few years entire telecom industries is in deep due to predatory pricing and drastic reductionin tariff due to stiff / cut throat competition and on other hand there is regular rise in electricity, Diesel, iabor

& operational cost, and it is fact that due to this revenue of BSNL and all others Private Operators is also

drastically reduced & are running in loss.

On and above to that additionally, BSNL is facing issues of non availability of 4G since last 4 years

which is resulting to drastically loosing high revenue earning data business. Delay & restrictions for obtaining

bank loans had resulted in to discontinuity in growth & marinating the existing services effectively. As well as

over delayed in allowing BSNL for earning revenue through renting out its vacant space & buildings since last

2 years have resulted in to stop in earning of huge revenue which can be achieved without any capital,

operational & maintenance cost.

15-A, Hira Nagar Society, Akshar Chowk, Vadodara-390 020. Ph. : (O) 0265-2331666 (R) 0265-2350350 Email : bgpatel@bsnl.co.in

BS}ILtu1w

SANCHAR NIGAITI EXECUTMS' ASSOCIATION (INDIA)BIPIN G. PATGL

GUJARAT GIRCLE HEAD QUARTER

Circle Secretary SNEA (D, GujaratM. : +91-9426270944

CireleD. K DAV€

President SNEA (I), GujaratM. : +91-9426505850

Otherwise this is same BSNL which was registering profit / operational profit since many years to gather afterits formation, despite it was having much more work force liability at the time of formation compare to as on

date. More over thereafter work force is continuously decreasing due to retirement & thus work force liability

is decreasing in terms of thousands every year & presently it is reduced to 35 0/o coffipar€ to formation.Now looking to the aspect of National security & secrecy, price balance in market in interest of

customers, providing & maintaining telecom seruices in naxalite, terror, hilly, rural area and rural

digitalization, irrespective of profit and loss, the presence of BSNL-MTNL is essential in country as a part ofsocial obligation on behalf of Government. So it is important to see that the presence of BSNL - MTNL as

strategic PSU is require, because priority of BSNL is "seryice centered" not "profit centered" as like all otherTelecom operators are functioning.

Accordingly we humbly and earnestly request your good self for resolving the issues of Government

owned BSNL and thereby to ensure its revival by Government with considering overall spirit as suggested &recommended in Reports of various committees which are already submitted to Government such as Reports

of (1) IIM Ahmedabad (2) 55th Report of Standing Committee on IT, (3) 24th Report of committee on PSUs

for Review of loss making CPSUs, (4) Report of BSNL management to DOT in ref.of DOT ltr dtd: 19.12.2018

to BSNL, (5) Information released by "Press information Bureau, Government of India" regarding decision

taken by the then Group of Ministers while corporatization of The DTS & DTO to BSNL dated: 01.09.2000 and

the Cabinet note dated: 25.09.2b00 which is approved by Central Cabinet Secretariat dated: 28.09.2000.

In this regard immediate correctirie steps required to be imptemented for revival are as under.(1) (ra) 4G is to be provided immediately without any spectrum charges and Taxes being Government PSU,

Subsequently allowing for 5G trial at par with othe.r operators, such that since the beginning BSNL should

not deprived as happened in case 4G.(1b) Renewal of 2G for coming few years as still majority customers of rural, semi urban, urban are still

interested in Voice and it has also a major share of present revenue.(1c) MSO or IPTV licence: Major network of BSNL Land line service copper based which is very costly

and it has many limitation for expansion for providing high speed internet services compare to fibre

based FTTH, hence it almost obsolete service, Thus for facing competition with private operators on the

front of FTTH based triple play service, it is highly essential for BSNL to obtain MSO or IPTV licence or tieup with such service & content provider such that BSNL can also offer triple play service trough FTTH

because now a day's private players are aggressively offering triple play service. Thus to face the

competition at present and future too, this is only a future of telecom market.

(2) With top priority all pending cases regarding transfer / mutation of assets in terms of Land & Buildings

on the ownership of BSNL is to be carried out centrally between DOT and BSNL. As well as while

monetizing asset i.e. vacant & underused land and building either for sale or renting the actual market

value is to be ascertained instead of estimating based on book or history value.

(3) It is to be ensured by Government to generate finance either by SPV or monetization of assets and till

that immediately, soft interest loans from various banks are to be made available for routine need &implementing complete revival package.

It is wofth to state that in connection to asset: loan ratio, according to Parliamentary Committee on ITreport, all operators have collectively obtained almost 7 Lakhs Crores loan from Banks which is almost

equivalent to their asset value. While BSNL has obtained only 15 thousands crores loan against the BSNL

asset value, worth of more than 4 Lakhs Crores in terms of land, building, Copper, Fibre etc as per

present market rates, It is very minimum loan: asset ratio, comparing to all others operators. As well

BSNL is directly and indirectly providing employments to lakhs of families of Nation.

NBSTILeyqte

D. K DAV€Circle President SNEA (f), Gujarat

1y1. : +91-9426505950

SANCHAR NICAJIT EXECUTMS' ASSOSTATION (INITIA)GUJARAT CIRCLE HEAD QUARTER

BIPIN G. PI\TCLCircle Secretary SNEA (I), Gujarat

M. : +91-9426270944

(4) (4a) It is also worth to mention that even under the present financial stress our most of the executives

ire contributing their level best for the cause of BSNL, by paying from own pockets and on an average

they incurred dxpenditure of thousands of rupees and trying their level best to maintain & ensure that

services should continue uninterruptedly.(4b) while implementing any HR reforms pertains to work force, priority is also to be given for resolving

varibus HR issues by way of appropriate policy decisions which are long pending at DOT / BSNL'

Such as implementation of 3rd'pRC for BSNL executives by considering the status of BSNL as strategic

pSU, Standard pay scale of EZ - E3 in place of intermediate & substandard scale, Pension contribution to

Government as per actual basic pay & refund of excess paid amount till date, delink of BSNL pay revision

from pRC for DoT recruited & BSNL absorbed DoT pensioners, GPSU promotion policy which has no

financial implications ,30 o/o Superannuation Benefit etc. are also to be given due consideration at an

earliest, This all will ultimately boost up moral of BSNL fraternity to inspire them to work with more

devotion for the cause of BSNL'

Need to restrict predatory pricing adopted by few operators: Due to lack of monitoring by TMI on the

issue of predatory pricing,'the rirhole telecom industries is incurring heavy loss & in dip and if it will

continue so longer tnan iiis big threat to telecom industries. And if this condition will continue then it will

be furtheilesulted in threat to Banks also, because all these private telecom operators may not.be in

position to repay the huge loan 6mount in time and they will not remain viable so longer. So predatory

price adopted'by few opJrators is at the cost of national asset, is to be addressed immediately by TRAI.

It is also need of hour that Government may instruct all State and Central Government establishment to

obtain available Telecom services from BSNL - MTNL. It is also worth to mention that presently majority

of State governments have initiated the work for developing their own wide area network and fibre grid

for providing internet broadband services, While BSNL is already having infrastructure and man power to

do same type of work. By doing this, double expenditure is occurring to Government. Hence Priority may

be given to BSNL for all suCh proiects including digital India, so that existing available staff and

infrastructure of BSNL may also be utilized for generating revenue.

(7) Ensuring to reassign the existing infrastructure and establishment of BBNL under the control of BSNL by

Merger of gsNt_ and ggNL, As BBNL is not having enough staff to install & maintain the network which is

bein! estaolished by incurring huge expenditure borne by Government to provide internet connectivity

up [o gra, panchayat tevet. gstu- 'is already having nationwide spread network. Recently the

maintenance of the g'gt\,lt network is withdrawn from BSNL and handed over to other agency which is

not having such a huge manpower & presence up to rural area for maintaining it. Thus even though it is

a new project, netwdrk starts deteriorating before its actual utilization. Because takeover of project by

ne* ug.niy will take more than 6 months and before the task of take over complete the whole network

might have been damaged up to such an extent that, it will not be possible to restore. So complete

neiwork installed at huge cost investment will be smashed'

So if all these infraslructure and establishment of BBNL is brought under the control of BSNL where

sufficient number of man power with experience in relevant field all over the India are available, will

execute the telecom prolects timely and aiso it will fulfil the real purpose to achieve the dream project of

Govt. of India for upliftment "Rurall' by way of digitalization of Rural part of country at par with urban, by

providing high speed internet services. This will also help full to compensate BSNL staff'

(5)

(6)

15:A, Hira Nagar $ociety, Akahar Chowk, Vadodara-390 020. Ph. : (O) 0265-2331666 (R) 0205-2350350 Email : b$patel@bsnl.co.in

SANCHAR NIGAJIi nXESUTMS' ASSOCIATTON (INDIA)BIPIN G. PATEL

GUJARAT CIRCLE HEAD QUARTER

Circle Secretary SNEA (I), GujaratM. : +91-9426270944

D. K DAVECircle President SNEA O), Gujarat

1y1. : +91-9426506850

15.A, Hlra Nagar Society, Akshar Chowk, Vadodara-390 020. Ph. : (O) 0265-2331666 (R) 0265.2350350 Email : bgpate@bsnl.co.in

(8) Hurdles and discrimination for permission and Taxes I levy charges, Propefty taxes by civic and otherGovt. Agencies, and facilitate BSNL by providing duct while implementing infrastructure projects of Govt:To overcome all these, policy decision is to be taken and direction are given to all concerned ministries ofcentral & State Government so that they may issue necessary instruction to their down to line sectionsalong with standardized rate & procedure (with some relaxed rate structure for BSNL) with intimation toBSNL Corporate office to maintain similarity at all stages. These all will proved as a saving of proceduraltime for permission, money, man hours and legal litigations arising due to absence of above procedures

& rates and thus all project will be executed as per target ,need and urgency.

(9) Considering BSNL for paying electricity charges as per industrial tariff, as laid in letter no: BSNL H/Q 3-29lEW-2002dated 1111112002 accordingtodirectionof Hon'bleSupremeCourtof lndiaitwill helplottoBSNL in terms of huge saving form existing expenditure: As per BSNL HQ Ltr No : 3-29lEW-2002 DatedL1.1t.2002 as the erstwhile Departments of DTS/DTO were already an industry under ID Act, as held byHon'ble Supreme Court of India, since the DTS/DTO have been corporatized BSNL falls in the category ofIndustry. Further Finance Act 2003-03 has also accorded the status of Industrial Undertakings to theTelecommunication Companies under Section 72A (7) (aa) by insertion of sub-clause (iiia) below itemNo. (iii).The Govt should suitably amend the relevant electricity regulation to allow BSNL industrial tariffinstead of commercial at present. This pro active action will give a much needed support to thecompany. And accordingly Industrial Tariff for Electricity is to be made applicable for BSNL.

(10)Excluding 8olo licensee fee on AGR, payable by BSNL on ICT project i.e. other than Telecom service ---Affecting Revenue of BSNL: Due to Digital India plan / Smart City plans of Govt. of India different models

/ Agencies / State Govt,s are working on it and'a parallel infrastructure development is started acrosspan India particularly in Optical Fiber deployment, Cloud services and data Centre Services. BSNL has

taken initiative and has identified various system Integrators (SIs), Technology Partners so that BSNL

can participate in the bids issued by State Govt.s / Civic Authorities / SPVs etc. Major hurdle in winningthe bid is, Sis are ready to share the profit of 6-7 % with BSNL to meet Turnover / some technicalparameter in participating the bid. But with B0lo License fee it becomes 14-15 0/o cost to SIs, thus projectare not becoming financially viable for SI to bid with BSNL. In order to ensure that BSNL may participatesuch bids successfully, If 8o/o license fee should be excluded in considering revenue as AGR for projectsother than Telecom Service as above. BSNL can definitely generate revenue of more than 1200-1500crores annually.

Hence we request your good self to consider our suggestions so that it will be helpful to uphold theinterest of Employer (BSNL), Employee and Customers in overall interest of our great Nation.

(SNEA), Gujarat BSNL, E Mail: bgpatel@bsnl.co.in and bgpatel63@gmail.com

Copy to:(1) Hon'ble MOC (Home Affairs), Union Govt. of India, Head of GOM, revival of BSNL-MTNL, for inf & N/A Plz.

(2) Hon'ble MOC (Com, Ele & IT Law and Justice and), Union Govt. of India, for inf & N/A Plz.

(3) Hon'ble Principal Secretary to PM, Union Govt. of India, for inf & N/A Plz.

(4) Hon'ble Principal Advisor to PM, Union Govt. of India, for inf & N/A Plz.

(5) The GS and President, SNEA, CHQ New Delhi for inf & N/A Plz.

B G Patel, Circle

Yours